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Five Years Post-PASPA: The Spread of Legal Sports Betting in the USA
Five years ago, the Professional and Amateur Sports Protection Act (PASPA) was repealed by the Supreme Court, kicking off one of the fastest periods of gambling legalization ever seen in the USA.
The repeal of PASPA, which had prevented all but a handful of states from regulating sports betting, started a revolution in real money betting that has forever changed the US gambling industry.
Five years later, it’s time to look back at how the market has developed and the legal, economic, and social effects of this monumental change.
The Context: The Downfall of PASPA
PASPA was a federal law that came into effect in 1992. It included all states except Nevada, Oregon, Montana, and Delaware, which were excluded because their laws already had sports betting provisions.
PASPA outlawed sports betting in all other states, effectively banning it nationwide. This didn’t mean that sports betting wasn’t happening; it was just an underground, offshore activity.
PASPA remained in force until May 2018, when the Supreme Court ruled it unconstitutional. This was thanks almost entirely to the efforts of New Jersey, under the leadership of Governor Chris Christie, who brought the legal challenge after trying to legalize online sports betting in 2011 and 2014. New Jersey argued that part of PASPA violated the anti-commandeering doctrine (the tenth amendment), which, in overly simple terms, prevents the federal government from coercing states to adopt or enforce federal laws.
The District Court first heard New Jersey’s case, then the Third Circuit, with both ruling against them. However, upon appeal, the case was heard by the Supreme Court (SCOTUS) on May 14th, 2018. SCOTUS agreed that PASPA violated the anti-commandeering principle, rescinding the entire act and stating that PASPA was meant to work as a whole, meaning that if part of it was not legally viable, the whole act must be struck down.
Legal Outlook: 38 States Legal, 12 To Go
With PASPA gone, each state now had the right to decide whether to legalize sports betting, with a majority opting to. As of November 2023, 38 states have said yes, passing new laws that allow retail sports betting. Online sports betting is also available in 26.
There are 12 states left to legalize. Three of them (South Carolina, Alabama, and California) face strong opposition, and the remaining nine are looking to introduce bills in the 2024/2025 legislative sessions. North Carolina and Minnesota are tipped to be the next to join the fray, and Oklahoma introduced a new proposal two months ago.
The legal landscape remains complex, with different rules, regulators, and taxation regimes in each state. On top of this, in certain locations, the presence of tribal gaming compacts has conflicted with commercial interests (the ongoing case of Florida sports betting and tribal opposition in California serve as perfect examples).
Growth of Online Casinos – Not Going As Planned
While there was no guarantee, many industry experts and commentators hoped that the legalization of sports betting would soon be followed by online casino regulation. However, thus far, only six states have legalized online casinos: New Jersey, Delaware, Pennsylvania, Michigan, West Virginia, and Connecticut, the latest to join the ranks, passing HB 6451 in 2021. Since then, there’s been no further movement for online casinos.
Players outside the mentioned states may only use land-based casinos or free social gaming sites where available. Sweepstakes casinos are also available across the country, Idaho and Washington aside. As a legitimate gaming option, sweepstakes are taking the US by storm, but just like with real online casinos, players should use a review site to find the best options.
As sweepstakes casinos don’t require a license in the USA, expert advice such as Casino Cabbie’s Wow Vegas Online Casino Review highlights any security issues and the benefits and pitfalls of each site as well before players sign up, making them an invaluable resource.
Economics: More Than $220 Billion Spent On Sports Betting Since 2018
One of the biggest drivers of sports betting legalization is the promise of potential tax revenue. The US sports betting industry is enormous, and since 2018, more than $220 billion has been spent on wagers, contributing over $3 billion in state taxes. The revenue earned by states has been instrumental in funding local projects and new initiatives, as well as responsible gambling research and support.
More in-depth and up-to-date research focusing on the exact economic contribution of sports betting is thin on the ground, and the last comprehensive study by Oxford Economics was published in 2017. At the time, it detailed that the entire sports betting industry created over 216,671 jobs.
Due to the lack of current data, we’re left to turn to figures charting the impact of the entire gambling industry, which includes casinos and sports betting. According to statistics from the American Gaming Association in 2022, US gambling is a powerhouse industry, creating, in total, 1.8 million US jobs, with $104.2 billion in wages (these figures include the entire supply chain).
There can be no argument that over the last five years, US sports betting has been a substantial economic contributor, helping state governments recover from COVID-19, creating jobs, and stimulating economic growth.
Social: 77% of American Adults Support Legalization in their State
Legally and economically, things have changed rapidly in the States since the repeal of PASPA, but what about the social impacts?
Research shows that 85% of Americans think the removal of PASPA was correct, with 77% now supporting sports betting legalization in their state. Moreover, the number of Americans open to placing sports bets has grown by 24 million since 2019. With many enjoying the newly legal betting options available to them, public attitudes towards gambling as a whole have seemingly softened.
With many states also benefiting from increased government budgets brought through sports betting tax revenue, it’s important to recognize the benefits this has made to social provisions. Many states have used the influx to contribute more money to education funds and other social causes, like reducing homelessness.
A proportion of the money is also used to fund state problem gambling assistance, with many running state-based hotlines and counseling services. Nonetheless, in many cases, this funding is not enough to offset the increased rates of gambling harms caused by legalization.
Future Outlook: Challenges and Concerns
Looking forward, the US online sports betting industry has a projected compound annual growth rate (CAGR) of 17.33% for 2023-2027, meaning there’s much more to come. However, this rapid growth will lead to some challenges.
Offshore gambling has been a considerable issue for the legal sports betting market. In 2022, The American Gaming Association estimated that Americans wagered $63.8 billion with illegal bookies, costing $3.8 billion in lost gaming revenue and $700 million in state taxes.
While offshore gambling is reducing, the latest data shows that 77% of online sports bets are now placed through regulated operators, compared to just 44% in 2019. However, things are not all rosy, and 48% of those who bet offshore believe they are placing legal wagers.
Gambling addiction also poses a considerable threat to the sustainability of the entire US gambling industry, with some states recently reporting problem gambling rates over 6%, which is three times the national average (to contextualize this figure better, the UK has a problem gambling rate of 0.2%). High rates of problem gambling twinned with rapid growth potentially represent a ticking time bomb that could rock the entire US industry.
It’s undoubtedly been an incredible five years for US bettors and sportsbooks; as a newer gambling market, the US must now look to more mature gambling jurisdictions to see what player protection methods work best and implement them sooner rather than later.
Leading iGaming content provider Spinomenal has dropped its hot new slot, Westside Glory as part of its Adventure Series.
Westside Glory is set on the West Coast streets where bling, bravado, and beats make for a platinum title. Framed by palm trees and the iconic Golden Gate Bridge, this 5×3 slot takes players on the ultimate urban experience.
The game’s Wild symbol is represented by a striking lady and will count for all symbols except free spins and bonus symbols. Discovering five wild symbols on a winning line returns x1,000 the bet. Bags of cash, Cadillacs, gold rings and ferocious dogs all feature as the other high-value symbols.
Three or more scattered Free Spins symbols trigger the Free Spins, although these symbols will only appear in the base game on reels one, three and five.
Westside Glory also includes the Countdown Wild, which activates when the reels have come to rest. If there are any countdown Wild symbols on the screen, the game will enter a respin mode. Here the Countdown Wild will remain in place until the next re-spin and the counter decreases by one. Once there are no Countdown Wilds with a number greater or equal to 1 on the slot the re-spin mode finishes. These can only appear on reels one, three and five in the base game and re-spin mode.
Players can also take advantage of the Mystery symbols feature. Once the reels stop, if there are mystery symbols, they will open to reveal one random symbol, except Bonus, Wild or Free Spins symbols.
Free Spins are triggered by landing three or more scattered Free Spins symbols. In this mode, a Wild symbol expands on one reel and remains in place until the round ends. Once activated, players choose one of five options—each determining the reel for the Stacked Wild and the number of Free Spins awarded.
Three or more scattered Bonus Symbols launch the Bonus Game. Players receive three spins on a three-tiered fortune wheel to win multipliers, extra spins, or level-ups. Advancing levels increases prize values. A level-up awards an extra spin, and after all spins are used, players receive the total collected winnings.
Spinomenal CO-CEO, Omer Henya commented: “Westside Glory takes players straight to the beating heart of Hip Hop culture – where fresh beats, vibes and wins make this a chart-topper.”
The post Spinomenal drops Westside Glory slot appeared first on European Gaming Industry News.
PG Soft, a world-class digital mobile games company, has launched Jack the Giant Hunter – a cascading-style, 5-reel, 4-row video slot featuring expanding reels and a dynamic multiplier mechanic.
Jack the Giant Hunter instantly plants players into an enchanted world where the path to riches is made perilous by a fierce giant. The action unfolds against a backdrop of mythical giants and golden treasure hidden in the clouds. Battle axes, golden harps, and glowing beanstalks populate the reels, while a brooding soundtrack heightens every spin.
Four or more Scatter symbols trigger 12 free spins, with additional Scatters awarding even more. Once Free Spins are live, each reel expands to six symbols, beginning with a multiplier of x2. As players climb higher into the clouds, Golden Egg symbols boost the multiplier by two with each hit, creating the potential for gigantic payouts. The feature can also be retriggered, allowing the adventure – and the rewards – to soar even higher.
PG Soft’s spokesperson commented: “Jack the Giant Hunter is a hero-driven fantasy epic that raises the bar again. The game is packed with stunning visuals, rewarding mechanics, and immersive storytelling – it’s a fantastic addition to our growing portfolio.”
The post PG Soft releases fantasy-inspired Jack the Giant Hunter slot appeared first on European Gaming Industry News.
Betsson, Soft2Bet, and Novibet were among the standout winners at last night’s inaugural SBC Awards Europe ceremony.
The prestigious ceremony took place on the evening of Thursday, 12th June at the Hilton Malta in Saint Julian’s. The evening brought the industry together to recognise the people and companies driving progress and setting new standards in sports betting and gaming across Europe.
The evening was hosted by globally recognised sports broadcaster and football presenter, Alison Bender, who presented 34 distinct awards honouring the industry’s leading operators, affiliates, and suppliers, in front of an audience of 400 industry stakeholders.
Rasmus Sojmark, Founder and CEO of SBC, said: “We launched SBC Summit Malta to better reflect the innovations and achievements shaping Europe’s entire gaming ecosystem. SBC Awards Europe builds on that mission, offering a platform to spotlight the industry’s best across all verticals.
“While casino operators and game studios continue to be recognised for their outstanding achievements, the introduction of new categories—covering key sectors such as sportsbook and payments—has enabled us to honour the full spectrum of talent driving progress across the industry.”
It was a standout night for Novibet, which secured two awards: ‘Operator Innovation in Gaming’ and ‘Sportsbook Operator of the Year’. Meanwhile, Betsson Group was named ‘Casino Operator of the Year’, Betsson Group Affiliates won ‘Best Affiliate Program‘, and 1xBet took home the ‘Marketing Campaign and Sponsorship of the Year’ award.
In the Operator & Supplier categories, Bragg Gaming was recognised for its commitment to safer gambling with the ‘Socially Responsible Initiative of the Year’ award. Additionally, BGaming picked up the ‘Best Exclusive Game Partnership’ award, and Alea took home the prestigious ‘Employer of the Year’ award.
Exceptional leadership across the industry was recognised through the coveted ‘Leader of the Year’ award, which was jointly awarded to Bilyan Balinoff (Co-Founder, Vegas Legends) and Jovana Popovic Canaki (CEO, iGP). The ‘Manager of the Year’ accolade was presented to Pierre Pulis (Head of Marketing, BETBY).
In the supplier categories, Soft2Bet walked away with two awards on the night: ‘Acquisition & Retention Partner‘ and ‘Industry Innovation of the Year’. Games Global was named ‘Casino Supplier of the Year’ while OpenBet secured the title of ‘Sportsbook Supplier of the Year’.
Other winners in the supplier categories included Oddin.gg, which won the ‘Live Betting Product‘ award; Sportradar, which was awarded ‘Sports Data Product’; and BetConstruct, which was named ‘Platform Provider of the Year’
The evening also featured a number of ‘Rising Star’ categories, highlighting the achievements of emerging European operators and suppliers. In the operator categories, Casumo Services Limited secured the ‘Rising Star in Casino’ award, whilst BETANDYOU was named ‘Rising Star in Sports Betting’.
In the supplier categories, Octoplay was honoured with the ‘Rising Star in Casino’ and BETER won ‘Rising Star in Sports Betting’.
In the affiliate categories, Casino Guru was recognised as ‘Casino Affiliate of the Year’, while Flashscore was awarded ‘Sports Affiliate of the Year’.
Mindway AI and Payhound were celebrated for innovations in payments and compliance, taking home the ‘Compliance & KYC Partner of the Year’ and ‘Payment Solution of the Year’, respectively.
Continuing its predecessor’s commitment to celebrating advancements in gaming, the night also featured a number of ‘Game Developer’ categories. Relax Gaming was honoured with the ‘Game Aggregator of the Year‘ award, and Evoplay took home the ‘Game Design & Art Direction’ award. Meanwhile, Omnigame was awarded ‘Game Mechanic/Feature of the Year‘, and Mascot Gaming won ‘Game Music / Soundtrack’.
The coveted ‘Game of the Year’ award was claimed by Relax Gaming for their title ‘Ancient Tumble‘, in a category newly opened to public voting for the 2025 edition.
Highlighting the outstanding work of European game studios were the ‘SlotCatalog’ awards. Pragmatic Play won the ‘Game Studio of the Year – Large’, Hacksaw Gaming took home the ‘Game Studio of the Year – Medium’ and Reel Studio was named ‘Game Studio of the Year – Small’. The ‘Rookie of the Year‘ award went to Backseat Gaming.
“I would like to take the chance to thank our platinum headline sponsor, BetConstruct, along with all our premium and supporting sponsors, whose generous support allowed us to celebrate the industry’s accomplishments in a truly meaningful way,” said Sojmark.
The awards ceremony concluded the final night of SBC Summit Malta, which saw 6,000 industry stakeholders convene at the InterContinental Hotel, Malta, from June 10-12.
The post SBC Awards Europe: Meet the 2025 Winners appeared first on European Gaming Industry News.
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